NEW TAXES

Wairarapa Times-Age, 6 January 1939, Page 5

NEW TAXES

DEFENCE & OTHER NEEDS IN UNITED STATES

PRESIDENT ON LENDING AND SPENDING. VIGOROUS DEFENCE OF NEW DEAL. By Telegraph—Press Association —Copyright. NEW YORK. January 5. In placing before Congress a 9.000,-000,000-dollar Budget for the 1939-40 fiscal year, President Roosevelt asks for nearly 500,000.000 dollars in new taxes to finance farm benefits and the enlarged national defence programme. He forecasts that the deficit for the sixth consecutive year will be one of 3,326.000.000 dollars, bringing the national debt to the statutory limit of 45,000.000,000 dollars. The President affirms that the Government’s lending and spending programme of 1938 checked the recession. He issues a warning against its curtailment, “arbitrarily or violently.” Nevertheless he has reduced the recovery and relief estimates of 1939-40 to 2,266,000.000 dollars, 921,000,000 dollars below 1938-39. However the President asks for an immediate deficiency appropriation of 750,000,000 dollars in order to finance the Works Progress Administration till July, 1 and for 1.890,000.000 for the national defence programme, but only 1,319,000,000 of that amount in wanted immediately. President Roosevelt’s message carries a vigorous defence of the New Deal’s spending. “We have not been throwing taxpayers’ money out of the window pr into the sea,” he said. “We have been buying real values with it. “The greater part of the-budgetary deficits that have been incurred have gone for permanent tangible additions to our national wealth. The balance has been an investment in the conservation of our human resources, and I do not regard a penny of it as wasted.”